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HomeMy WebLinkAbout4.02 Delta Dental Renew AgmtG~~ OF Dp~~~ /// 19~~`~ STAFFREPORT CITY CLERK ``` ~~ DUBLIN CITY COUNCIL File #^~0~-0 Q^ ~4L~Fr ~21~~' DATE: May 18, 2010 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJE . Delta Dental Contract Renewal and Amendment Prepared By: Julie Carter, Human Resources Director EXECUTIVE SUMMARY: The City Council will consider authorizing the City Manager to execute the contract renewal and amendment with Delta Dental California. FINANCIAL IMPACT: If approved by City Council, funding will be included in the City's Fiscal Year 2010/2011 budget to cover premium costs. Delta Dental proposes a 5.25% premium increase for Fiscal Year 20010-2011 which, based on a current employee census, represents $6,354 annual increase. RECOMMENDATION: Staff recommends the City Council adopt the resolution authorizing the City Manager to execute a contract renewal and amendment with Delta Dental of California. ~ Submitted By Revi wed y Human Resources Director Assistant C anager Page 1 of 2 ITEM NO. ~~ ~/ ne DESCRIPTION: The City has maintained Delta Dental insurance since 1989. On July 1, 2001, the City joined ABD Insurance Services Municipality Pool and continued dental coverage through Delta Dental/DPO. ABD Insurance was recently acquired by Wells Fargo of California lnsurance Service Inc. and they have continued to provide the same municipality pool for smaller cities. The municipality pool provides smaller cities with the opportunity to be part of a 30,000 municipal participant group, which provides added purchasing power when negotiating contract renewals. Current City Benefit: Delta Dental/DPO provides a maximum of $2,500 coverage for each enrollee per calendar year and the City's contract provides for the follow payment for services as follows: Preventive 100% Basic 90% Crowns 60% Prosthodontics 60% Payment for orthodontic benefits dependent children. is limited to a lifetime maximum of $1,500 for Delta Dental proposes that effective July 1, 2010, the monthly premiums will increase 5.25% to be: Coverage Group Current Rates from 7-1-10 Proposed Rates 7-1-10 to 6-30-11 One Part $49.43 $52.02 Two Part $94.45 $99.41 Three or More Part $156.26 $164.46 Based on current employee census this represents an annual increase of $6,354. The previous premium adjustment occurred on July 2009 in the amount of 5.9%. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Resolution authorizing the City Manager to execute contract renewal and amendment with Delta Dental of California. Page 2 of 2 ~ a~ I RESOLUTION NO. XX -10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN *********** AUTHORIZING CITY MANAGER TO EXECUTE CONTRACT RENEWAL AND AMENDMENT WITH DELTA DENTAL OF CALIFORNIA WHEREAS, the City of Dublin has entered into an agreement with Delta Dental of California to provide dental insurance to eligible City employees; and WHEREAS, the existing contract term will expire on June 30, 2010. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby authorizes the City Manager to execute the contract renewal and amendment to the agreement with Delta Dental of California for period of July 1, 2010 through June 30, 2011. PASSED, APPROVED AND ADOPTED this 18th day of May, 2010, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk l -~~'r~~ ~ y• ~- 5~ ~8-~° ATTACHMENT 1